Credit Cards are a very effective tool, only if used properly. They not only allow us to ‘buy now and pay later’, they also give us attractive discounts, gift vouchers, reward points and other privileges. However, if credit cards are misused, they can create one of the biggest debt traps for you!
With demonetization drying up the availability of physical cash, credit cards have become more popular than ever. You can use your credit card at millions of outlets to pay for your purchases even without having cash.
Having a credit card is not difficult. With hundreds of cards in the market you can avail any card as per your requirement and suitability. You just have to meet a few eligibility criteria, submit some essential documents and you can enjoy a credit card yourself too. So, let’s find out what you need to do to have your first credit card.
Requirements of getting your first credit card
- Your age
This is a no-brainer. You have to be above 18 years old to get a credit card in your name. While 18 is the minimum age criteria, some banks and financial institutions offer you a credit card if you are 21 or 23 years or above. There might also be a maximum age criteria beyond which you cannot apply for the card. Usually this age is limited to 65 years or 70 years.
- Your annual income
How can you afford a credit card if you have no source of income? How will you pay off your credit card dues? Banks and financial institutions, thus, offer credit cards only if you have a minimum annual income as per their eligibility criteria. Every credit card has a minimum income requirement and if your income meets this criterion you can avail the card. This requirement starts from as low as Rs.1.8 lakhs per year.
- Your employment status
Again, to have a source of income, you should have a gainful employment. You should be a salaried employee or have a business of your own. Your employment status, thus, is an important requirement too to get your own credit card.
These three requirements determine whether you can get a credit card or not. Besides these criteria, you also need to furnish some important documents. Here is a list of the documents required to avail a credit card.
- KYC (Know Your Documents) which are an important requirement. KYC documents include your photograph, address proof and an identity proof. If, however, you are an existing accountholder with any bank or financial institution, your bank or institution would allow you a card without KYC requirements.
- Age proof – age being an important requirement, you would have to submit your age proof when availing a credit card.
- Income proof is also required. Every credit card has a minimum income criterion (as stated earlier). To prove that you meet this minimum income criterion, you would be required to submit your income proof. This proof can be your Form 16 and salary slip if you are employed or the Income Tax return of your business. Moreover, the bank might also insist on your bank statement of the last six months to establish your financial standing.
- Joining fee – many credit cards require you to pay a fee to have the card. This is called the joining fee. While availing the card, you would have to pay the joining fee.
These were the common documents required to apply and avail a credit card. So, now you know what the requirements of having your first credit card are. Do you know how you can apply for the same? It is simple, actually. You can apply for a credit card online. Online application of a credit card is easy and convenient. You can compare the various cards available and their features if you go online. The application form is also available online which can be filled and submitted. Simple, isn’t it?
Since Credit Cards are cashless transactions, it goes in tandem with the Digital India movement introduced by the Government of India. E-Commerce thrives on online transactions. Cash on Delivery has even stopped by certain vendors post demonetization. Even though cash is available now, the limit on Savings Accounts is still at Rs 24,000 per week. Hence for larger transactions, you can use Credit Cards and reap other benefits as well. So, check your eligibility, documents and other requirements and then apply for your first credit card and happy shopping!